BofA Securities Reiterates Buy Rating on Vivid Seats Inc. (SEAT)

BofA Securities analyst Curtis Nagle reiterated a Buy rating and $6.25 price target on Vivid Seats Inc. (NASDAQ: SEAT).

The analyst comments "According to Bloomberg, Vivid Seats is exploring a potential sale after reportedly receiving takeover interest from private equity firms. Per the report, talks are ongoing and may not result in a transaction. The report also does not specify a takeout value for the company, though the company had a market cap of approx. $770mn before the news, according to Bloomberg. The stock traded up 20% (vs. the S&P 500 down 1%) based on Monday’s closing price. Before the news, SEAT had declined approx. 40% YTD and significantly lagged the S&P 500, up 25%. Multiple compression drove a large part of the stock’s weakness, likely reflecting investors’ outlook for continued GOV pressures (according to Bloomberg, SEAT traded at just 5x ’26 EBITDA at the close on 12/27, well below the stock’s historical average of 9x and peak of 24x). Given the stock’s depressed multiple, we think the public markets may not be giving credit for the strong industry outlook and Vivid’s solid fundamentals, with the company maintaining positive EBITDA despite GOV headwinds ramping. As such, we think a potential transaction could make sense given valuation overhangs, though a deal would be dependent on holders accepting a price at a valuation well below the historic average. Maintain Buy."

For an analyst ratings summary and ratings history on Vivid Seats Inc. click here. For more ratings news on Vivid Seats Inc. click here.

Shares of Vivid Seats Inc. closed at $4.54 yesterday.

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